As a creator, you are not here to earn money.
You are here to make money.
You go to the job and earn money.
As a creator, you are not paid for your job time.
It doesn’t matter whether you are on social media for 8 hours. You can be on social media for 8 hours without getting paid.
You are not making money because you are not creating. The word creation has two words.
- Creation
- Creativity
You are paid for your creativity here.
You are paid for the problems you solve for the masses.
You can speak to one person in private and impact that one person personally and professionally.
When you speak to the masses over social media, you speak to thousands.
Your message is spread to thousands.
The most significant pieces of the puzzle are creation and creativity.
The Creator’s Dilemma: Time vs. Value
In the traditional job market, 85% of employees are paid by the hour or have a fixed salary. [Bureau of Labor Statistics, “Characteristics of minimum wageworkers, 2020”]
But as a creator, you’re entering a different economic paradigm. The creator economy, valued at over $100 billion in 2022, operates on principles that may initially seem counterintuitive.
In a traditional job, you would spend 8 hours scrolling social media and get a full day’s pay.
In the creator economy, you will have zero income.
Time invested = Money is not there in the creator economy.
The Harsh Reality of Creation Without Creativity
Many creators believe that only being can help them.
You might think that having your presence on Twitter, LinkedIn, YouTube, Quora, Medium, and Meta might help you and you be productive.
Many creators believe being active on social media = creating value.
You can post content the whole day and earn zero dollars.
Do you see that? You invested time, energy, and hope into your online presence, but your bank account is not finding results.
Others are growing and succeeding, but you struggle to gain traction.
The Two-Piece Puzzle: Creation and Creativity
What is the solution?
Let me first share the currency of the creator economy.
The currency of the creator economy is creation and creativity.
As Seth Godin, renowned author and entrepreneur, states in his book “The Practice“, “The creator’s job is to make change happen. And the first change that has to happen is in the creator.”
If you reread the above quote, it says, “The first change that has to happen is in the creator.”
What is that change?
That change is focusing on giving rather than receiving.
Value creation = value received.
It is the change that you create in yourself and your audience.
Let’s break down the two crucial elements:
- Creation: The act of producing content, products, or services.
- Creativity: The unique perspective, insights, and solutions you bring to your creations.
The Power of Impact at Scale
When you combine creation and creativity, there is exponential impact.
You create impact through:
- A one on one coaching session
- A social media post that helped many take action / change their mindset.
- A video that helps millions.
Look at it now fundamentally. In your job, you are connected to a few entities. Your impact is on a few, perhaps a few hundred or thousands if you are the top boss.
In the creator economy, your earning potential equals the scale of your impact.
A study by SignalFire found that the top 1% of Twitch streamers earn 50% of the platform’s revenue.
Are they working more hours?
No. They have just mastered creating engaging, creative content that resonates with a large audience.
Transforming Your Approach: From Time to Value
Move from trading time for money to creating value through creativity.
Here is the step-by-step solution:
- Identify your unique perspective: What is unique about your insights that you can share with other people?
- Focus on problem-solving: What challenges does your audience face that you can address?
- Develop your creative skills—learn, learn, learn. Learn new techniques and concepts to improve your content.
- Create consistently: A routine makes you creative because you are on the job of creation, whether paid or unpaid.
- Measure your impact: Keep tracking your engagement, reach, and conversions, not the time spent.
The Creativity Compound Effect
In his book, “Atomic Habits,” James Clear discusses the compound effect of small, consistent actions. This principle applies perfectly to creativity in the creator economy. Each creative act builds upon the last, gradually increasing your impact and, consequently, your earning potential.
My Friend Ratish Jha focuses a lot on this.
Compounding happens everywhere.
When I started a new YouTube channel, I added ten subscribers. Then, in a month, there were 100. By the next month, there should have been 200. Actually, it became 600.
Here’s a paragraph from Clear’s book that resonates deeply with the creator’s journey:
“You should be far more concerned with your current trajectory than your current results. Your outcomes are a lagging measure of your habits. Your net worth is a lagging measure of your financial habits. Your weight is a lagging measure of your eating habits. Your knowledge is a lagging measure of your learning habits. Your clutter is a lagging measure of your cleaning habits. You get what you repeat.”
As a creator, your income is a lagging measure of your creative habits. The key is to consistently develop those habits, trusting that the results will follow.
Embracing the Creator’s Path
It is not easy if you see your transition from a time-based mindset to a value-based mindset.
It requires your persistence and willingness.
Potential rewards are enormous.
If you impact one person, you make x amount of money.
If you invest 100kx, you will make 100k multiplied by x amount of money.
The growth is never linear here.
It is no job; it is your potential. The rewards are immense.
In the creator economy, your earning potential is limited only by your creativity and the value you provide to your audience.
As your Digital Economics Coach, I invite you to embrace this new paradigm. Stop counting the hours you spend online and start measuring the impact of your creations. Focus on solving problems, sharing unique insights, and consistently delivering value to your audience.
Don’t let another day go by trading time for pennies. Start creating value and watch your impact and income grow exponentially.